Thursday, December 18, 2008

Car Wars

(I suppose this gives a whole new definition to 'bailing out'. - AM)

Wednesday December 17, 6:27 pm ET
DETROIT (Reuters) - Citing a credit crisis and dwindling sales, Chrysler LLC on Wednesday said it would shut down all of its manufacturing operations from the end of this week for at least a month.

By Tian Ying
Dec. 17 (Bloomberg) -- General Motors Corp., seeking a U.S. government bailout to avoid bankruptcy, opened its eighth vehicle plant in China because of rising demand in the world's most populous country.

The factory, in the northeastern city of Shenyang, will be able to make as many as 150,000 vehicles a year, using a two- shift system, the automaker said in an e-mailed statement today.

By Thomas Black
Dec. 17 (Bloomberg) -- General Motors Corp., the biggest automaker in the U.S. and Mexico, increased production of $12,625 Chevrolet Aveos south of the border while seeking a bailout to keep domestic plants from closing.

The Detroit-based company and competitors such as Ford Motor Co. shifted more manufacturing to Mexico this year to capitalize on wages less than an eighth of those in the U.S.

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